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When you run a small business the different rules and regulations that must be complied with are numerous. In addition to the normal taxation, GST, local council and other regulations that impact on almost a daily basis, when you have employees, a whole extra level of regulations are added.

Q. I run a small training business where I have a mixture of permanent full-time and part-time employees. I've just had one of my permanent part-time employees hand in her resignation and has given me one week's notice. She has been working for me now for approximately eight months and, due to the difficulty of getting a replacement, I would really like her to work for four weeks. Can I force her to work four weeks' notice?

A. Since January 1, 2010, the National Employer Standards (NES) covers almost every employee in Australia. Small business owners will need to comply with the NES if they:

Operate as a company in any state or territory.

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Operate and employ people in the ACT, Northern Territory or Victoria.

Operate business in connection with interstate or overseas trade or commerce.

Operate as a sole trader, partnership or a trust in New South Wales, Queensland, Tasmania and South Australia.

There are in all 10 minimum standards that employers must meet covering such things as minimum entitlements for annual leave, long service leave, public holidays, redundancy pay and notice of termination.

When it comes to the period of notice of termination the same length of time applies to both employers and employees. If an employee does not give the correct period of notice upon resigning, the employer can withhold from their final termination payout an amount equal to what they would have earned had they worked the full required notice period.

The final termination payment must include not only the normal pay for the final period worked but must also include a payout of any accrued annual leave and, where applicable, redundancy payments.

This requirement for employees to provide the same period of notice of termination unfortunately will be of no assistance to you. Under the NES the required notice period for permanent employees depends on the length of time they have been employed and their age.

The periods of notice are as follows:

Continuous employment of less than one year - one week.

Continuous employment of more than one year but less than four - two weeks.

Continuous employment of more than three years but less than six - three weeks.

Continuous employment of more than five years - four weeks.

Where an employee is older than 45 years of age, and they have worked continuously for at least two years with the employer, an extra week of notice is required.

This will mean in relation to the employee that has handed in her notice of resignation, as she has worked for you for less than 12 months, she only needs to provide you with a one week's notice.

Questions on small business tax or other issues can be emailed to business@taxbiz.com.au. Tax for small business, a survival guide, by Max Newnham, is available in bookstores and as an ebook.